Charity Tax Fight - MSNewsNow.com - Jackson, MS

Charity Tax Fight

The Mississippi Corvette Club has been raising money for charity for years but members are frustrated and disappointed.

"I practiced law for 40 years so I've seen some frustration, but this is right up there at the top of it,” said Tom Gerity.

We were there Friday afternoon when two deputy tax collectors came to the Jackson Convention Center  to collect five hundred dollars cash. Gerity says every penny they raise will go to the Diabetes Foundation of Mississippi but two days ago the State Department of Revenue notified the group they would have to pay taxes on every donation, even items in a silent auction and t-shirt sales. That includes the forty dollars Corvette enthusiasts pay to participate in the show.

"One of our club members went to an auto zone and he bought an air compressor, paid sales tax on it there, brought it in and handed it to us and said here put this in the show," said Gerity. "They wanted tax on that. They want tax on everything. They want tax on the front door, they want tax on the back door, they just want their tax."

Kathy Waterbury a spokeswoman for the Mississippi Department of Revenue gave us a statement that reads in part: 

"Admissions or amusement tax is a sales tax on the admission price, ticket to an amusement or event. Even when the ticket is called a donation, if the donation is required to be paid to enter, then that amount is subject to the admissions tax. She goes on to say items offered for sale are subject to sales tax like t-shirts and food."  

Waterbury says exempt amusements would include high school football games. There is a 5 dollar charge to get into the Corvette show Saturday

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